The Commissioner Of Income Tax v. M/S Phil Corporation Ltd. And Anr

IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 58 OF 2002 THE COMMISSIONER OF INCOME TAX Versus M/S PHIL CORPORATION LTD. AND ANR. ... Appellant... Respondent Ms. A. Dessai, Advocate for the Appellant. Mr. M. S. Sonak, Advocate for respondent no.1. P.C. -Coram:D. G. KARNIK &F. M. REIS, JJ.-Date:30th August, 2010 Heard both counsel for the parties. 2. The appeal has been admitted vide order dated 8.7.2002 on thefollowing substantial question of law:- " Whether on the facts and in the circumstances of the case, theITAT was right in directing the Assessing Officer to allow deductionunder section 80(IA) pertaining to Konica Film Unit withoutdeducting depreciation under section 32 of the Income Tax Act?" 3. In our view matter is covered by the decision of the full bench incase of Plastiblends India Limited Vs. Additional Commissioner ofIncome Tax and others. The full bench held that quantum ofdeduction allowable under section 80-IA of the Income Tax Act hasto be determined by computing the total income from the businessafter taking into consideration all deductions allowable under section30 to 43D of the Income Tax Act. The full bench has further heldthat whether the assessee had claimed the deductions allowable under section 30 to 43D of the Income Tax Act or not, the quantumof deduction under section 80-IA has to be determined on the totalincome computed after deducting all deductions allowable undersection 30 to 43D of the Act. 4. In view of the decision of the full bench, the appeal has to be allowed and order of ITAT has to be quashed and set aside. Accordingly appeal is allowed and impugned order is set aside.Matter is remanded back to the Assessing Officer for computation ofincome in accordance with law. D. G. KARNIK, J. vn F. M. REIS, J.